Strong VAT receipts linked to the Christmas trading period and inflation have boosted the Government’s finances at the start of the year. The latest exchequer returns show the sales tax generated just €3.8 billion in January, up 4 per cent or €148 million on the same month last year. However, the Department of Finance noted that the year-on-year comparison was skewed by a technical factor linked to the withholding of VAT receipts in December 2022 and December 2023.
Thank goodness we’ve reached peak MBA The Irish woman opening the door for high-end brands in a Canadian city with a ‘fabulous quality of life’While separate data show retail sales were up during those months, the current high rate of inflation is also likely to be driving receipts. Consumers must spend more to buy the same amount of goods during periods of elevated price growth, which inadvertently boosts government VAT receipts. Overall the Government collected €7.8 billion in tax in January, which was €358 million or 4.8 per cent ahead of the same period last yea